Strong investor demand for Aldi

A recent example of investor appetite for supermarket assets during the pandemic is GCW’s sale for PWC of the Lytham St Annes Aldi. The store was purpose built for Aldi in 2014 although with residential sold off above would not fit their modern requirements.  The asset was under offer prior to the pandemic and unfortunately collapsed due to the market uncertainty.  

After multiple bids the property transaction completed in October 2020 at £5m – 4.82% to LXI REIT.  The price reflected almost a 50 basis improvement in yield since February.

 With 18 years unbroken to Aldi and fixed rental uplifts, this highlights the depth of demand for these long income assets.